10 Hottest Homebased Businesses For 2000

The need for human resources outsourcing firms is steadily increasing as more small-business owners realize that managing HR functions-from negotiating complex benefit plans to maintaining employee records-for 15 or 20 people isn't as easy as it might first appear. If you've got a knack for 401(k) plans and putting together employee manuals, then why not consider capitalizing on the newest trend in human resources: virtual HR.

HR is just one of the latest industries to jump on the online bandwagon, but unlike other companies, they seem to have found their audience by providing resources that actually make running a business easier. By offering entrepreneurs online access to such HR tools as recruiting materials, benefits packages and employee record maintenance, virtual HR firms are providing the solutions their clients need to keep up with the increasing demands of their growing companies.

"Smaller businesses [often] don't have the knowledge, time or resources to address HR issues completely within the organization," says Dennis Abraham, president of Abraham & Aaron, a human resource consulting and outsourcing firm in Pleasanton, California. "An awful lot of our clients became clients because they're now in trouble."

According to International Data Corp. (IDC), U.S. companies spent $7.3 billion on HR outsourcing services in 1999. IDC predicts that amount will reach $10.2 billion by 2003. "More businesses are realizing they can manage their businesses better, cheaper and easier without an in-house HR department," says Andrew Kurtzig, founder of eBenefits, a provider of online human resources services to small and growing businesses.

The cost and complexity of managing employees is increasing due to new laws and regulations employers must comply with. Employees also want more benefits, training, policies and support. According to the SBA, the annual cost of regulation per employee is about $5,500 for a company with less than 20 employees. The cost is significantly lower for businesses with more than 500 employees-$3,000 per employee. As a result, small-business owners are looking to HR firms as a cost-effective solution to handling employee issues and concerns.

The Society for Human Resource Management offers a certification program to help you get the experience you need. "If you come into it with an HR background, you're probably going to be ahead of the game," says Abraham. "If you have a business background, you're going to have to hire the HR knowledge."-Lori Francisco

For More Information

Society For Human Resource Management
1800 Duke Street
Alexandria, Virginia 22314 USA
(703) 548-3440
www.shrm.org

National Human Resources Association
c/o Judy Huschka
JH Association Management
6767 W. Greenfield Ave.
Milwaukee, WI 53214
www.humanresources.org

Virtual HR: Human Resources Management in the Information Age
By John W. Jones
Crisp Publications, $17.95Outsourcing Human Resources Functions : Strategies for Providing Enhanced HR Services at Lower Cost
By Mary F. Cook
Amacom, $75.00